New Forecasts: Here's What Analysts Think The Future Holds For Celestica Inc. (TSE:CLS)

Celebrations may be in order for Celestica Inc. (TSE:CLS) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The revenue forecast for next year has experienced a facelift, with analysts now much more optimistic on its sales pipeline. The stock price has risen 5.3% to CA$497 over the past week, suggesting investors are becoming more optimistic. It will be interesting to see if this latest upgrade is enough to kickstart further buying interest in the stock.

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Following the upgrade, the current consensus from Celestica's 15 analysts is for revenues of US$16b in 2026 which - if met - would reflect a major 44% increase on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$14b in 2026. The consensus has definitely become more optimistic, showing a nice increase in revenue forecasts.

View our latest analysis for Celestica

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that Celestica's rate of growth is expected to accelerate meaningfully, with the forecast 34% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 15% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 25% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Celestica is expected to grow much faster than its industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for Celestica next year. Analysts also expect revenues to grow faster than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Celestica.

Looking for more information? We have analyst estimates for Celestica going out to 2027, and you can see them free on our platform here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.